The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:

The fdbowing data relate to the operations of Qlilow Company. a wholesale of cotuurner wods: Current assets as of March 31: Accounts receivable s 8700 S 24300 S 46300 Building and equipment. net $ 116.400 Accounts payable Common stock Retained earnings S 28.050 $ 150.000 a gros margin is 25% of sales Actual and budgeted sales dau: March (actual) S 62.000 e s 83,000 $ 108.000 S 59.000 are for cash and 40% on credit Credit sales are collected in the month following sale- The accounts receivable at March 31 are a result of March credit Each month's inventory should equal the following momh's budgeted cost of goods sold. One-half of a month's inventory purchases is paid for in the month of purchase: the otlr half is paid for in the following month lie accounts payable at March 31 are the result of March purchases of inventory. Monthly expenses are as follows: commissions. of sales; rent. 0.500 per other expenses deprecation). 6% of sales Assume that these apenss are paid nynthly. Depreciation is $873 per month (includes depreciation on new assee). Equipment costing E 700 wdl be purchased for cash in April. Managemelt would like to maintain a mimmum cash balance of at least $4,000 at the end of each month The company has an agreennt with a local bank that allows the company to borrow in incrennts of $1,000 at the beginning of up to a total loan balance of S20.OOO. The interest rate on these is per month and for sunphcity we assume that is not cornpm:nded The company would. as far as it is able. repay the loan plus accumulated interest at the end of the quarter. Using the preceding data: I. Complete the schedule of expeed cash collections Z Complete the nwrchandise purchases budget and the schedule ot expected disbursements for merchandise 3. Complete the cash budget